The Barefoot Investor is not only barefoot but butt naked swimming in the deep water waiting for the tide to go out. Today's Sunday Times (Jan 3, 2016) Q/A leaves me speechless (sorry about the wavy photo) Since 1802- 1$ invested in Gold would make $3.21 in 2013wow !!!!!!! 1.In 1802 I presume he means US$ as no Au$ existed The US Continental $ collapsed by 1790. The early 1800's the dollar was a weight of silver of 371-4/6 grains of fine silver (0.773Toz). So assuming that the current value of 1$ in 1802 is now US$10.73. The gold:silver ratio in 1801 was16:1 I think (before that was re-adjusted in the mid 1800's) which meant that 0.773 toz of silver was 0.039 toz of fine gold or currently US$41.03. In 2013 it was closer to $60. If he was talking about Pounds the UK pound in 1800 was equal to 0.2toz of gold (5 pounds per oz) or currently US$212. Where did he get $3.21 in 2013 ?? He also forgot to mention the complete collapse of the US$ against gold and silver in 1863 fueled by money printing to fund the revolution. 2. Invested in the stock market of 1801 what stocks ? what market. I presume he means the London Stock market which was formed in 1801? The US market only opened 2 decades later. This is completely misleading talk about mainstream BS
It gets even better. In the section underneath that, he tells the person to sell their investment property and invest the proceeds in managed funds.
I know it is a big ask for someone like yourself, but if you bothered to read the article in it's entirety, you may have picked up on the key words "real inflation-adjusted returns". Even more Googling will unveil that this calculation has been performed by numerous people, and as much as it may pain you..... they get the same answer.
Happy New Year to you too. Real adjusted inflation since 1801 in dollars that no longer exists - I call bull#&@T. Please respond to my comments and not make up your new BS comments based on numerous Googlings (haha) as is your normal procedure. How does Googlings match up dollars that have been devalued to 0 not once but twice since 1800. Seriously wrcmad you need to get a new act this year. Go trash another post.
Given that the only ones who seem to have an interest in dismissing inflation figures are PM pundits, and taking into consideration the accuracy of most of their other "claims", I have no reason not to.
I bothered to check the Barefoot Investors source. If you feel the urge to do something very out-of-character, then you can check it too. It is right there in black and white. Maybe you first need to research "real inflation-adjusted", because I am guessing that term has you bamboozled too.
He's a great fan of Warren Buffet and believes in the LONG term wisdom of shares. His perspective is accurate if you're a young worker imho, but if you're not prepared to wait 20-30 years for your returns then it might be a bit risky. Rule One for anyone over 50 has to be 'don't risk your capital', and the sharemarket at the moment implies (imho) either loss of capital or be prepared to wait it out until things improve. Gold too, but that's another issue indeed. I really enjoy his columns and he has very good down to earth advice generally - even if he is a believer in the current system.
By the way wcmad what stocks did you buy in 1801 that gave you a million to 1 growth - "the great horse buggy company" ? Please Google it for me.
Julie at age 50 right now would you place all your money in Au$ in a bank deposit or in AU in a private storage company. In 10 years or 15 years when you retire what will be of greater value ? Capital has such a ethereal nature these days.
You must be way younger than me then I remember clearly buying a large bag of hot chips to share with my mate in high school circa 1982, it cost 40 cents, scallops were 7 cents. Yesterday, I bought a small lot of chips for $4 and scallops were 90 cents. Does this mean the RBA is correct and I am wrong? Anyone who has lived a while knows the inflation figures are BS. http://forums.silverstackers.com/uploads/26_inflation.png[/quote] Then that makes gold's real inflation-adjusted returns even worse than the figures being discussed.
wcmad you are so full of compliments this year. For me it is wonderful to be so mentally retarded that I don't miss the subtlety of your new year compliments. If you are talking about 1792 $ haha then you have no idea of monetary history. Please let us know which stocks you bought in 1792. I am still waiting.
I'd not place all my money in any one place. Given the current state of the world, I certainly wouldn't be in any asset that I have second hand control over. I'm a fan of Jim Rickards viewpoint and so I'd be metals, antiques, land, cash. If I had an SMSF I'd be making sure it owns real things, and not shares in a company that has values and PE ratios of hundreds to 1. We have a world system that is built on rent seeking and usury, and at some stage in the future I think this system will collapse and we'll go more toward the Arab banks model, returning banking to its real purpose with boring old conservatives who understand and practice 'fiduciary duty'. In the meantime I'd steer clear of anything that involves HFT or banker control.
No need to go back to 1806 for million to 1 growth - one US dollar invested at the start of 1900 in the US tobacco industry would have grown to in excess of US$6.2m by end-2014. Now all I need is to get my time machine working! Source: Credit Suisse Global Investment Returns Yearbook 2015: http://publications.credit-suisse.c...fm?fileid=AE924F44-E396-A4E5-11E63B09CFE37CCB
At school in 1965, two shillings, being 20c, would buy you a pie, a paddle pop and an apple for lunch. Government inflation has a separate purpose to information.
We all recognise that inflation in real terms is horrendous has no bearing on the baloney CPI or the metrics used to calculate what a $ was worth in 1800 or 1900 and what inflation adjusted earnings represent. My concern is the the so- called barefoot investor talks about investing a $ in 1801 and making $1 million dollars today. The issue is that the $ of 1800 had no correlation to the $ of today. You may as well say I invested 1Zimbabwe $ in 1970 and made $100T in just 15 years. What has that to do with the current US$. The US $ of 1800 is worth nothing as are almost all the stocks traded at that time. However gold and silver which are money still have value today.
This sounds so true. And sadly our super is linked to stocks. It's criminal that our Government keep interfering with our super. It seems the age limit to access super creeps up every 10 years ( and sometimes less ). I expect to get mine when I turn 110 years. I'm not a violent person, but I'd like to push my size 12 footy boot up some of these greedy self serving politicians clackers. Any suggestions who's clacker needs a kicking first ????
